News Corporation has launched a new service it says will help people get better deals with banks. The website promises discounts on credit cards, loans, insurance and superannuation. It will also generate lucrative commissions for News Corp and its partners in the project. Consumer groups are warning users to read the fine print.

Transcript

MARK COLVIN: News Corporation has launched a new service which it says will help people get better deals with banks.

But it will also generate lucrative commissions for News Corp and its partners in the project.

Consumer groups are warning users to read the fine print.

Business reporter Pat McGrath.

PAT MCGRATH: MoneysaverHQ is a joint venture between News Corporation Australia and Pinstripe Media, a company operated by breakfast TV personality David Koch.

Aside from the website, the Monday My Money lift out in News Corp tabloids around the country has been rebranded moneysaverHQ.

David Koch used his program to launch the service yesterday.

DAVID KOCH: MonysaverHQ is a free website, featuring uncomplicated information from the experts. You can access tips on everything from slashing your bills, to getting a better deal at a bank.

PAT MCGRATH: Getting a better deal from the bank is the first mission for the service.

It's hoping to sign up thousands of people to collectively bargain for a low interest credit card with an Australian bank.

It's teamed up with the price comparison website Mozo for the project.

John Rolfe is the cost of living editor at News Corp and is running the campaign.

He says the project comes after a similar campaign for health insurance last year, as well as the One Big Switch project, which aimed to find a cheaper power contract for thousands of Australians.

JOHN ROLFE: It wasn't the case that all of those people took up the offer. Only a fraction of them did. Many more, twice as many more, in fact decided to use that to negotiate a better deal for themselves with their existing supplier or another supplier.

So, One Big Switch, who was our partner in those campaigns, it didn't make any money from those people.

PAT MCGRATH: The credit card campaign is running for two weeks, and so far, 1,200 people have signed up.

JOHN ROLFE: We expect to earn a commission out of it. We're not making any bones about that. We have to pay our way. We have to find a way to pay for journalism that makes a difference, and that's what I'm aiming to do through moneysaverHQ. So I don't think it's that we're ruling it out, it's just part of the discussion that our campaign partner would have.

It's not something that I'm involved in day-to-day; my job is to really raise awareness of the problem and provide information on the solutions, but we will earn a commission. That's going to happen.

PAT MCGRATH: But, so does that mean you're only going to go to a provider that's going to pay a commission to News Corporation?

JOHN ROLFE: I don't think we're seeking to exclude anyone from this process. We're happy to talk to anyone and I know that Mozo has been approached by interested parties since we kicked this off on Monday. So we're certainly not closing the door on anyone, but we will need to make money in order to make this sustainable.

PAT MCGRATH: But it sounds like you are closing the door. If you need to make money to make it sustainable, then whichever provider agrees to the deal will have to agree to pay a commission to News Corporation and its partners won't it?

JOHN ROLFE: But, the size of that commission is not going to dictate the offer that we put forward to our readers.

PAT MCGRATH: Oh, but the size doesn't matter. I mean, the question is whether, if there's a commission or not, will that determine whether or not a deal gets done with a provider?

JOHN ROLFE: Oh look, as we've said, we expect to earn a commission. It's as simple as that.

PAT MCGRATH: But don't you think it's misleading to be telling the users and the readers on the one hand that you're looking for the best deal, when the reality is that you're looking for the best deal that will earn a commission for News Corporation and its partners?

JOHN ROLFE: No, I don't think it's misleading, because we've said it in our stories and we've said it on the website. We've said that we expect to earn a commission. We've been very upfront about that.

GERARD BRODY: That is not helping a consumer look at the entire marketplace and see if they're getting the best deal.

Some of these intermediaries, such as the One Big Switch, say that they're sort of price makers, and it's the strength in numbers that can get a good price. There is something in that, but whichever model's that's being chosen, it's important that they are transparent, they're clear, the consumers know what they're getting themselves involved in and that they're able to make any complaints and have that followed up if that happens.

MARK COLVIN: Gerard Brody from the Consumer Action Law Centre ending that report from Pat McGrath.